Nasty Gal files for bankruptcy
Founder Sophia Amoruso will also resign as executive chairwoman
Nasty Gal has filed for bankruptcy, the company announced yesterday. Founded by Sophia Amoruso in 2006, Nasty Gal is seeking bankruptcy protection from Chapter 11, a US Bankruptcy Code that proposes a plan of reorganisation to keep the business alive.
"Our decision to initiate a court-supervised restructuring will enable us to address our immediate liquidity issues, restructure our balance sheet and correct structural issues including reducing our high occupancy costs and restoring compliance with our debt covenants," Nasty Gal CEO Sheree Waterson said in a statement. "We expect to maintain our high level of customer service and emerge stronger and even better able to deliver the product and experience that our customers expect and that we take pride in bringing to market."
Recode reported that Amoruso will also step down as executive chairwoman, a role she eventually took up after passing the CEO reigns to then-president Waterson in January 2015. At the age of 22, Amoruso started her company as an eBay store before it grew into a successful business – Forbes reported that its sales were as high as $128 million in 2012. After opening two brick-and-mortar retail locations in California by 2015, the company faced a few setbacks: it laid off 10 percent of its employees during a restructuring plan and also faced lawsuits from former employees.
Despite its bankruptcy, don't expect Nasty Gal to go under the radar just yet. Netflix is working on a 13-episode series Girlboss, based on Amoruso's best-selling book #Girlboss. Tomorrowland actress Britt Robertson will play Sophia. Just days ago, Courtney Love launched a second exclusive collection with Nasty Gal, with pieces that reflect the musician's own grungy style.
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